Insurance premium rise may lead to debt

Those with car insurance to pay may end up in more need of debt management than those on similar income it has emerged, after a study by Confused.com highlighted a wide disparity in annual insurance costs.

Airline pilots were used as examples of this disparity, paying just £321 on average a year, a huge contrast to the owner of a mobile disco who would have to pay in the region of £6,809.

The relative cheapness for pilots may arise as a result of a perception that they are very safe in charge of a machine, having passed the relevant safety tests which prove they can fly and land passenger aircraft safely.

Footballers also pay premium insurance however they are usually highly paid so this is not an issue. Referees, on the other hand, also pay this premium insurance, despite not receiving the pay packet to match.

Whilst some people are eligible for quite cheap car insurance, the cost for others, despite being on similar wages, can be quite high.

The AA has described recent increases in insurance as the greatest surge in premiums ever. However, according to the insurance provider, the three months to September saw a 0.3 per cent drop in average annual cover.

Categories; Current UK Economy, Advice on Travel Costs, Income Worries and Debt,